The comparative statement of financial position of Blue Spruce Corporation as at December 31, 2020, follows: BLUE SPRUCE CORPORATION Statement of Financial Position December 31 December 31 Assets 2020 2019 Cash $ 53,500 $ 11,900 Accounts receivable 89,600 87,200 Equipment 26,200 21,700 Less: Accumulated depreciation (9,800 ) (10,800 ) Total $ 159,500 $ 110,000 Liabilities and Shareholders’ Equity Accounts payable $ 20,300 $ 15,500 Common shares 100,000 79,600 Retained earnings 39,200 14,900 Total $ 159,500 $ 110,000 Net income of $37,600 was reported and dividends of $13,300 were declared and paid in 2020. New equipment was purchased, and equipment with a carrying value of $4,500 (cost of $11,500 and accumulated depreciation of $7,000) was sold for $7,600. Prepare a statement of cash flows using the indirect method for cash flows from operating activities. Assume that Blue Spruce prepares financial statements in accordance with ASPE.

Waterway Inc. reported the following pretax income (loss) and related tax rates during the years 2019–2022.

Pretax financial income (loss) and taxable income (loss) were the same for all years since Waterway began business. The tax rates from 2019–2022 were enacted in 2019.

a.  Prepare the journal entries for the years 2020-2022 to record income taxes payable (refundable), income tax expense (benefit), and the tax effects of the loss carryforward. Assume that Jennings expects to realize the benefits of any loss carryforward in the year that immediately follows the loss year.

c.  Prepare the portion of the income statement, starting with “Operating loss before income taxes,” for 2020.

d.  Prepare the portion of the income statement, starting with “Income before income taxes,” for 2021.

Use the starting balance sheet, income statement, and the list of changes to answer the question.

Between January 1 and March 31, 2020:

1. Cash decreases by $300,000
2. Liabilities increase by $400,000
3. Paid-In Capital does not change
4. Dividends paid of $500,000

What is the value for Other Assets on March 31, 2020?

Note: Account change amounts are provided in dollars but the financial statement units are thousands of dollars.

Please specify your answer in the same units as the financial statements (i.e., enter the number from your updated balance sheet).

Tamarisk Inc. reported the following pretax income (loss) and related tax rates during the years 2019–2022.

Pretax financial income (loss) and taxable income (loss) were the same for all years since Tamarisk began business. The tax rates from 2019–2022 were enacted in 2019.

Prepare the journal entries for the years 2020–2022 to record income taxes payable (refundable), income tax expense (benefit), and the tax effects of the loss carryforward. Assume that Tamarisk expects to realize the benefits of any loss carryforward in the year that immediately follows the loss year.

Prepare the portion of the income statement, starting with “Operating loss before income taxes,” for 2020.

Prepare the portion of the income statement, starting with “Income before income taxes,” for 2021.

Consider a simple economy that produces two goods: pencils and muffins. The following table shows the prices and quantities of the goods over a three-year period.

From 2019 to 2020, nominal GDP   , and real GDP   .

The inflation rate in 2020 was   .

Why is real GDP a more accurate measure of an economy's production than nominal GDP?

Real GDP is not influenced by price changes, but nominal GDP is.

Real GDP does not include the value of intermediate goods and services, but nominal GDP does.

Real GDP measures the value of the goods and services an economy produces, but nominal GDP measures the value of the goods and services an economy consumes.

Concord Inc. reported the following pretax income (loss) and related tax rates during the years 2019–2022.

Pretax financial income (loss) and taxable income (loss) were the same for all years since Concord began business. The tax rates from 2019–2022 were enacted in 2019.

1. Prepare the journal entries for the years 2020–2022 to record income taxes payable (refundable), income tax expense (benefit), and the tax effects of the loss carryforward. Assume that Concord expects to realize the benefits of any loss carryforward in the year that immediately follows the loss year

2. Prepare the portion of the income statement, starting with “Operating loss before income taxes,” for 2020.

3. Prepare the portion of the income statement, starting with “Income before income taxes,” for 2021.

Bramble Inc. reported the following pretax income (loss) and related tax rates during the years 2019–2022. Pretax Income (loss) Tax Rate 2019 $84,800 40 % 2020 (190,800) 40 % 2021 212,000 20 % 2022 106,000 20 % Pretax financial income (loss) and taxable income (loss) were the same for all years since Bramble began business. The tax rates from 2019–2022 were enacted in 2019.

Prepare the journal entries for the years 2020–2022 to record income taxes payable (refundable), income tax expense (benefit), and the tax effects of the loss carryforward. Assume that Bramble expects to realize the benefits of any loss carryforward in the year that immediately follows the loss year.

Prepare the portion of the income statement, starting with “Operating loss before income taxes,” for 2020.

Prepare the portion of the income statement, starting with “Income before income taxes,” for 2021.

Question 7

The following information is available for Skysong Corporation for 2020.

1. Compute taxable income for 2020.

2. Compute pretax financial income for 2020.

3. Prepare the journal entries to record income tax expense, deferred income taxes, and income taxes payable for 2020 and 2021. Assume taxable income was $1,063,000 in 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
4.  Prepare the income tax expense section of the income statement for 2020, beginning with “Income before income taxes.” (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

1. The Accounts Receivable balance for River Corporation is $400,000 as of January 31, 2020. Before calculating and recording January 2020 Bad Debt Expense, the Allowance for Doubtful Accounts has a credit balance of $5,000. Credit sales for January 2020 are $4,000,000, and over the past several years, 1% of credit sales have proven uncollectible. An aging of River Corporation’s Accounts Receivable results in a $43,000 estimate for the Allowance for Doubtful Accounts as of January 31, 2020. Part A: PERCENT OF SALES METHOD Assume that River Corporation uses the percent of sales method to estimate future uncollectible accounts. a. What adjusting entry does River make to record January 2020 Bad Debt Expense? Accounts Receivable b. What is the “Accounts Receivable, net” on River’s January 31, 2020 Balance Sheet? c. What is “Bad Debt Expense” on River’s January 2020 Income Statement? Part B: ANALYSIS OF RECEIVABLES METHOD Assume that River Corporation instead uses the analysis of receivables method to estimate future uncollectible accounts. a. What adjusting entry does River make to record January 2020 Bad Debt Expense? b. What is the “Accounts Receivable, net” on River’s January 31, 2020 Balance Sheet? c. What is “Bad Debt Expense” on River’s January 2020 Income Statement?